Moldova & IMF IMF Activities Publications Press Releases

Limba romana                                                                         Russian


May 8, 2007


Johan Mathisen
IMF Resident Representative in the Republic of Moldova
 

PRESS STATEMENT


A mission of the International Monetary Fund (IMF) headed by Mr. Thomas Richardson, Deputy Division Chief, Northeastern Division (Belarus, Moldova, Norway and Russia) in the IMF’s European Department, visited Chişinău during April 25 – May 8, 2007. This was the second review mission under Poverty Reduction and Growth Facility (PRGF).[1]

The mission assessed performance over the previous six months in implementing macroeconomic policies and structural reforms agreed in the Memorandum on Economic and Financial Policies (MEFP), of November 29, 2006, and held discussions on the Government’s and the National Bank’s MEFP for the next 6-month period. The mission was pleased to note that performance under the program so far has been positive.

The mission reached a preliminary agreement with the Moldovan authorities on a MEFP for the remainder of 2007. This agreement, as always, will need to be reviewed by the IMF Management, following which it will be submitted to the IMF’s Executive Board for consideration. It is hoped that the IMF Executive Board will be able to consider this proposed agreement in late June 2007.


 

[1] The Poverty Reduction and Growth Facility (PRGF) is the IMF's concessional facility for low income countries. PRGF loans carry an annual interest rate of 0.5 percent, and are repayable over 10 years with a 5.5-year grace period on principal payments. On May 5, 2006 IMF’s Executive Board approved the PRGF arrangement with Moldova in the total amount of about US$118.5 million, the first tranche of which – about US$17 million – was transferred to the National Bank of Moldova in mid-May 2006. On December 15, 2006 IMF’s Executive Board approved an increase in the size of the loan to about US$167 million. The second disbursement was approved for an amount equivalent to about US$ 48.2 million.